Choice Broking's Sumeet Bagadia lists Cipla as top 'Valentine's Day 2024 Pick'; here's why
Cipla as his ‘Valentine's Day 2024 Pick’. Bagadia has recommended a ‘Buy’ on the pharma stock at ₹1,450 and up to ₹1,415 for a target price of ₹1,600 to ₹1,660. According to the expert, Cipla is currently trading at ₹1,450, moving within the range of ₹1,420 to ₹1,450 and showing signs of readiness for a breakout.
The formation of new higher highs and higher lows suggests a potential upward movement, with projected targets at ₹1,600 and ₹1,660. Importantly, significant support is evident around ₹1,415. Moreover, Cipla is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating a robust bullish momentum.
The Relative Strength Index (RSI) stands at 66.8, confirming an upward trajectory and signaling increased buying momentum. A prudent strategy involves considering buying opportunities during market dips, particularly around the ₹1,415 level. In summary, based on technical analysis and current market conditions, Cipla appears to present a promising buying opportunity for those aiming at price objectives of ₹1,600 and ₹1,660, contingent upon the implementation of prudent risk management measures, said the expert.
The stock has already jumped almost 39 percent in the last 1 year. In comparison, the Nifty Pharma index has advanced 53 percent in the last 1 year. Meanwhile, it had advanced 8 percent in February 2024 so far after an 8.4 percent gain in January 2024.
February is the fifth straight month when the pharma stock has given positive returns. In this period, between October 2023 and February 2024, the stock has added over 23 percent. The stock hit its record high of ₹1,462.20, in intra-day deals today (February 13).
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